Idorsia Ltd (IDIA) AI Stock Analysis

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Idorsia Ltd

(IDIA)

Rating:51Neutral

Price Target:

CHF2.50

▼(-14.68%Downside)

Idorsia Ltd's financial health is a major concern, with persistent losses and high leverage impacting its score significantly. While technical indicators show bullish momentum, the stock is overbought, posing a risk of a pullback. The valuation is weak due to a negative P/E ratio and lack of dividend yield, further affecting investor appeal.

Idorsia Ltd (IDIA) vs. iShares MSCI Switzerland ETF (EWL)

Market Cap

CHF659.51M

Dividend YieldN/A

Average Volume (3M)1.26M

Price to Earnings (P/E)―

Beta (1Y)2.85

Revenue Growth11.61%

EPS Growth-356.20%

CountryCH

Employees636

SectorHealthcare

Sector Strength40

IndustryBiotechnology

Share Statistics

EPS (TTM)-0.61

Shares Outstanding226,136,540

10 Day Avg. Volume887,576

30 Day Avg. Volume1,264,449

Financial Highlights & Ratios

PEG Ratio-0.17

Price to Book (P/B)-0.38

Price to Sales (P/S)0.00

P/FCF Ratio-1.40

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

CHF2.20

Price Target Upside-24.91% Downside

Rating ConsensusHold

Number of Analyst Covering1

Idorsia Ltd Business Overview & Revenue Model

Company DescriptionIdorsia Ltd, a biopharmaceutical company, discovers, develops, and commercializes drugs for unmet medical needs in Switzerland. The company has a clinical development pipeline that cover various therapeutic areas, including CNS, cardiovascular, and immunological disorders, as well as orphan diseases. Idorsia Ltd has a collaboration agreement with Janssen Biotech Inc. to jointly develop and commercialize aprocitentan and its derivative compounds or products; license agreement with Mochida Pharmaceutical for the supply, co-development, and comarketing of daridorexant; and Hoffman-La Roche Inc. to develop and market compounds in the field of cancer immunotherapy. It also has a collaboration with Antares Pharma, Inc. for the development of a self- administered drug device product for Selatogrel; and Neurocrine Biosciences, Inc. to develop and commercialize ACT-709478, which is in Phase II clinical trial for the treatment of epilepsy. The company was incorporated in 2017 and is headquartered in Allschwil, Switzerland.

How the Company Makes MoneyIdorsia Ltd generates revenue primarily through the development and commercialization of pharmaceutical products. The company earns money by selling its proprietary drugs and through licensing agreements with other pharmaceutical companies. Idorsia may also receive milestone payments and royalties from its partners based on the successful development and commercialization of collaborative projects. Strategic collaborations and partnerships play a significant role in the company's revenue generation, enhancing its research capabilities and market reach.

Idorsia Ltd Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q4-2024)

% Change Since: 148.31%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Neutral

The earnings call conveyed a balanced sentiment. While Idorsia faced challenges, such as the failed licensing agreement for aprocitentan and financial pressures leading to cost reductions, it also highlighted significant achievements. These included QUVIVIQ's market expansion and sales growth in Europe, Canada, and the US, and strategic financial maneuvers that ensured stability and future funding. Overall, the company is maneuvering through its challenges with a focus on growth and financial stability.

Q4-2024 Updates

Positive Updates

QUVIVIQ European and Canadian Market Expansion

QUVIVIQ is now available in nine countries across Europe and Canada, achieving CHF 32 million in net sales in 2024. Sales have shown a steady increase, with significant acceleration in Q4 driven by Germany and France.

US Sales Growth Despite Reduced Investments

QUVIVIQ's US sales grew to over CHF 28 million in 2024 despite a reduction in marketing and selling investments, showing steady growth.

Financial Stability Achieved Through Strategic Measures

Idorsia reduced its R&D commitment by US$100 million and restructured its convertible bonds, securing a new money facility of CHF 150 million, ensuring funds well into 2026.

Aprocitentan Approval and Launch Plans

TRYVIO (aprocitentan) received approval in the US and EU, with preparations for a focused launch in the US ongoing despite previous licensing setbacks.

Negative Updates

Failed Aprocitentan Licensing Agreement

The out-licensing agreement for aprocitentan could not be closed due to the undisclosed party's refusal to pay an exclusivity fee, necessitating alternative partnership strategies.

Financial Challenges and Cost Reductions

Despite strategic financial maneuvers, Idorsia faced significant financial pressures, including a non-GAAP operating loss of CHF 308 million.

Company Guidance

During the call, Idorsia provided guidance for 2025, with the expectation of reaching CHF 110 million in sales for QUVIVIQ, driven by strong performance in the EUCAN region. The company anticipates a non-GAAP EBIT loss of CHF 215 million, a significant improvement from previous years, thanks to cost reductions and a restructuring of their convertible bonds. This includes a CHF 100 million reduction in R&D commitments and a new CHF 150 million funding facility. The US GAAP result is projected at CHF 155 million, incorporating these financial maneuvers. Idorsia remains focused on securing partnerships for their pipeline assets, particularly aprocitentan, to further stabilize and extend their financial runway.

Idorsia Ltd Financial Statement Overview

Summary

Idorsia Ltd faces significant financial challenges with consistent losses and high leverage. The negative profitability metrics and cash flow issues indicate operational inefficiencies, with negative equity and high debt levels further straining financial health.

Income Statement

Negative

Idorsia Ltd's revenue has seen fluctuations with a noticeable decline of 26.19% from 2023 to 2024. The company consistently reports negative EBIT and net income, indicating ongoing operational challenges. The negative gross profit margin in 2024 suggests cost structure issues. Overall, the company struggles with profitability, reflected in the negative margins.

Balance Sheet

Negative

The balance sheet shows a negative stockholders' equity, which raises concerns about financial stability. The debt-to-equity ratio is not calculable due to negative equity, but the high total debt level is a potential risk. The equity ratio is negative, indicating that liabilities exceed assets, which is concerning for investors.

Cash Flow

Neutral

Operating cash flow remains negative, indicating challenges in generating cash from operations. However, there is a positive trend in free cash flow from 2023 to 2024, though it remains negative. The free cash flow to net income ratio is not favorable, reflecting difficulties in managing cash effectively.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	112.51M	152.39M	97.10M	35.35M	71.76M
Gross Profit	-67.08M	145.24M	90.84M	17.32M	-309.32M
EBITDA	-319.49M	-254.55M	-783.09M	-588.84M	-420.64M
Net Income	-263.76M	-297.92M	-827.90M	-634.60M	-445.12M
Balance Sheet
Total Assets	505.89M	500.00M	904.18M	1.48B	1.44B
Cash, Cash Equivalents and Short-Term Investments	124.36M	157.82M	476.32M	1.04B	1.01B
Total Debt	1.26B	1.20B	1.23B	1.16B	637.99M
Total Liabilities	1.72B	1.47B	1.57B	1.38B	849.88M
Stockholders Equity	-1.21B	-968.72M	-660.96M	104.20M	585.48M
Cash Flow
Free Cash Flow	-373.23M	-638.69M	-886.17M	-620.83M	-373.95M
Operating Cash Flow	-370.23M	-629.30M	-859.11M	-589.89M	-364.67M
Investing Cash Flow	305.06M	632.61M	743.90M	-53.26M	-607.13M
Financing Cash Flow	26.11M	-197.00K	162.31M	604.15M	850.08M

Idorsia Ltd Technical Analysis

Technical Analysis Sentiment

Positive

Last Price2.93

Price Trends

50DMA

1.85

Positive

100DMA

1.48

Positive

200DMA

1.22

Positive

Market Momentum

MACD

0.13

Positive

RSI

63.83

Neutral

STOCH

36.50

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:IDIA, the sentiment is Positive. The current price of 2.93 is above the 20-day moving average (MA) of 2.16, above the 50-day MA of 1.85, and above the 200-day MA of 1.22, indicating a bullish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 63.83 is Neutral, neither overbought nor oversold. The STOCH value of 36.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:IDIA.

Idorsia Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (46)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDIA	51 Neutral	CHF659.51M	―		―	11.61%	-356.20%
Sector *	46 Neutral	C$195.87M	-3.27	-23.14%	2.64%	20.75%	-0.36%
MLLCF	―	$146.12M	―	-40.40%	―	―	―
BSLN	73 Outperform	CHF663.60M	8.51		―	32.30%	631.04%
NWPHF	―	$175.31M	11.40		―	―	―
SPHDF	―	$204.24M	2.70	-93.91%	―	―	―
XLS	―	CHF118.85M	3.45		―	―	―

* Healthcare Sector Average

Performance Comparison

CH:IDIA

Idorsia Ltd

2.93

0.65

28.51%

MLLCF

Molecular Partners AG

4.22

-2.30

-35.28%

CH:BSLN

Basilea Pharmaceutica

53.80

13.80

34.50%

NWPHF

Newron Pharmaceuticals SpA

9.36

-2.64

-22.00%

SPHDF

Santhera Pharmaceuticals Holding

16.40

4.70

40.17%

CH:XLS

Xlife Sciences Ltd.

20.70

-8.20

-28.37%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 18, 2025